The Grenada Trades Union Council (GTUC) has again voiced its concerns over the manner in which Keith Mitchell's New National Party (NNP) government is planning to introduce the controversial 5% income tax on workers to help rebuild the country in the aftermath of the destruction caused last September by Hurricane Ivan.

Parliament was meeting Tuesday to debate the levy which is expected to be implemented from the first of next month. The TUC has reiterated its opposition to the monies deducted from workers being lodged with the Agency for Reconstruction and Development (ARD) whose Chairman is the Personal Advisor to Prime Minister Mitchell.

The trade union umbrella body is also calling on the Mitchell government to save money on cutting back on the number of political appointments in the service. Following is the full text of the TUC position on the proposed five percent (5%) levy:

The Grenada Trades' Union Council recognises the devastation suffered at the hands of Hurricane Ivan on September 7, 2004 and the need for massive resources to rebuild Grenada.

As the umbrella trade union body, we are conscious about the need to be in the forefront of mobilising support for this national effort. However, we cannot ignore the extreme devastation suffered by individual workers and Grenadians in general, the vast majority of whom are in dire need of assistance to rebuild their homes and their lives.

It ought to be emphasised that the incomes of many families are significantly being reduced due to job displacement and increase debt as a result of the hurricane. For example, a family that was paying one mortgage before Hurricane Ivan now probably has to pay a second mortgage.

The TUC wishes to highlight that in the aftermath of Hurricane Ivan, Government has done very little to assist public officers in rebuilding their homes and their lives. Very few public officers have been able to access assistance from the Housing Authority and as a result have had to struggle on their own.

In this regard, we consider the imposition of a five percent deductible on workers earning in excess of a thousand dollars beginning in September 2005, as too demanding.

From our analysis, 2005 is an extremely difficult year to ask workers to make a five percent contribution because many are rebuilding their lives. We suggest that any consideration should be implemented in 2006 incrementally as follows:

1% in the first year
2% in the second year
2.5% in the third year

This is premised on the significant increase in cost of living since Hurricane Ivan, which is impacting negatively on many workers.

Additionally, workers are indicating that their salaries are already totally committed and there is little or no disposable income that can be levied upon. Further, the TUC is totally opposed to any payment of worker' contribution to the Agency for Reconstruction and Development (ARD).

We believe that the money should be placed in a special fund under the Consolidated Fund and the ARD and Government draw down on the basis of approved projects by the Social Partners. This will ensure a greater level of accountability and transparency.

The TUC is also concerned that there is no system in place to ensure that all and sundry in the informal sector contribute to the Reconstruction and Development Fund. It means therefore that the burden falls upon the backs of workers in the public sector and sections of the private sector.

The TUC's position is that together with the social partners, a Committee should be set up to formulate a policy that will ensure the efficient contribution of all workers in the informal sector.

Finally, TUC wishes to make the following recommendation for consideration:

(1). The imposition of a 2 1/2% tax to be collected at the Port excluding basis food items, medicines, building items and agricultural items.

(2). An increase of one-half (1/2) percent tax on corporate profits for a period of three (3) years;

(3). Every stay-over visitor to the island be required to pay $2.00 US per night towards reconstruction and development to be collected by the Hotels/Guest Houses and for a three (3) year period;

(4). Foreign student registered at the St. George's University be required to pay $1.00 US as a contribution towards environmental development.

(5). Examination with a view to reduction of the number of political appoint advisor being paid under category 340.